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5 Ways to Grow Your Salon/Spa: How to Increase Your Profits by 28%

If you were to ask a typical business person or anyone who has ever studied economics the question “How do you grow your business?” you will more than likely get one of the following answers:-

  • Decrease Your Costs
  • Increase Your Turnover (or Sales)

and if you’re lucky you might get the odd response of . . .

  • Improve Productivity

Ask a salon/spa owner the same question (and I actually did this) and you will get similar answers only worded in a more specific way:-

  • Get more customers (which is a function of increasing turnover)
  • Sell more products (also a function of increasing turnover)
  • Sell more treatments [to existing clients] (a function of both increasing turnover AND improving productivity)
  • Reduce your costs (clearly the same as decrease costs)

The problem with these answers is that they are all very vague, don’t actually give you ideas of what to do and also are slightly conflicting.

For example . . . 

In order to increase turnover you might decide to increase advertising to bring in more clients. This would inturn increase your costs. Raising your costs might mean you simply break even rather than improve anything and at worse could see you spending more money (on advertising) than you are making from any new clients?

In a similar fashion you might decide to reduce costs which could inturn have a negative impact on the level of service you are able to offer in your salon. This could mean you lose clients or you don’t gain any new ones, resulting in lower turnover and sales.

Growing your business means growing your profits . . . this is NOT a bad thing!

I just wanted to address this point for a second. I know that as salon and beauty business owners you didn’t start your business simply to make money. For this reason I often find salon owners shy away from actively seeking to ‘make more profit’ because it’s not about the money.

But . . .

Profit doesn’t have to be just for the sake of making more money in a ” . . look how much money I have!” way. Growing your beauty business by growing your profits enables you to have more options.

You could use it to replace or improve your equipment. I am sure your clients wouldn’t mind at all if you upgraded your treatment table to the latest extra wide, extra comfy, fully adjustable model. This would simply mean a better experience for them.

Growing your business could mean redecorating your salon, taking on a new product range, refurbishing a treatment room or your manicure area. It might mean expanding the salon, training you and your team in new treatments and tecniques, opening a new branch or taking on new staff members.

It could even simply mean that you are able to spend more time with your preferred clients to give them an even better level of service than you currently offer.

So wanting to grow your business (by growing your profit) is NOT a thing to be remotely ashamed of in any way. It isn’t greedy, it simply gives you more options.

Now let’s get down to some specifics . . .

You are probably thinking then that there are hundreds of ways to grow your business, but would it surprise you to know that there are actually just 5 straighforward ways to grow your beauty business, indeed any business!

Sure, there are many variations on strategies. But there are just 5 basic ways that you can grow your salon profits – and the best bit is that one of them is so simple, so powerful that you won’t believe it unless I show you!

The Five Ways to Grow Your Beauty Business

The five ways to grow your salon or beauty business are:-

#1 – Increase the Number of Customers (incl. win more and lose less)
#2 – Increase the Frequency of Transactions (i.e. get your cutomers in more often)
#3 – Increase the Average Spend/Value of each customer
#4 Increase prices
#5 Improve efficiency (people productivity levels / strategic overhead reductions)

OK, these still seem a little bit general, so let’s look at each on in a bit more detail:-

Increase the Number of Customers – It stands to reason that if you are able to increase the number of clients you have without spending any money to do so (this includes keeping all the ones you currently have or minimising the number you lose). Then you will undoubtably make more money and the result is your business will grow.

Increase the Frequency of Transactions – On a recent podcast episode Rich McCabe from iSalon Coaching talked about the benefit of getting your clients in to see your just one week earlier than their normal visit patern (i.e. every 5 weeks rather than every 6 weeks) and the dramatic effect this could have on your business turnover. If you can sucessfully do this then you don’t need more clients . . . you just get the ones you already have to come to you more often thus visiting you slightly more in a year (even just one or two more visits) and your business turnover will indeed grow.

Increase the Average Spend/Value of Each Customer – the previous option is one example of this strategy – the key here being you don’t need any more customers to grow you business. Another way to do this is to increase the amount of money each client spends with you during each visit. This could be an upsell on treatments, an upgraded treatment, an additional treatment or possibly retail purchases to complement their treatments.

Increase Prices – This one is fairly straightforward. If everytime a client comes to see you they pay a little more for their treatments than they do now, it means that you are earning a little more money for each treatment you perform. Same number of customers, same number of treatments, same costs . . . more profit!

Improve Efficiency – This is the trickiest one to achieve as efficiency deals with squeezing more out of what you already have. In general it is a function of reducing costs (without reducing your offering) or getting more for what you are already spending which could be in terms of purchases, premises or people.

If you have team members who are not fully booked, but you are paying them anyway . . . then driving more customers to them will increase the money they are generating and would be an increase in productivity.

The only problem is that you would need to find these new customers in the first place and to do this will likely require some form of marketing which might increase your costs. The increase in cost must be more than recoved by the increased business to make it worthwhile.


Read more here 

Adam Chatterley

Salon Business Secrets -

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Comments 1

Guest - Samantha (website) on Saturday, 30 November 2019 23:16

When it come salon or spa it is important that your service is very satisfactory.

When it come salon or spa it is important that your service is very satisfactory.
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Thursday, 01 October 2020